Presentation on theme: "1 The Stanley Gibbons Group Investors Presentation March 2011."— Presentation transcript:
1 The Stanley Gibbons Group Investors Presentation March 2011
2 Contents Pages 1. Who we are 3 2.The Vision 4 3.What we sell 5 4.How we sell 6-7 5.The Market 8-9 6.Key opportunities 10 7.Investing in collectibles 11 8.Management team 12 9.Summary – key strengths 13 Appendix IFinancial history 14-15 Appendix IIThe Board 16-19 Appendix IIIMajor shareholders 20 Appendix IVContact Details 21
3 Who we are Biggest, and perhaps, the only brand name in our market 154 year trading history and experience – holder of Royal Warrant since 1914 Retained competitive advantage through an offering based on expertise, integrity and long term value to both collectors and investors Our main office is at 399 Strand (across from Savoy), with offices in Hampshire, Folkestone, Guernsey and Jersey Fraser’s autographs – biggest autograph dealer in Europe Benham Group – largest dealer of first day covers in the UK
4 The Vision Our vision is simple: “To create a business of a size and profitability which matches the size of the Stanley Gibbons brand name”. Stanley Gibbons currently possesses less than a 1% share of the global stamp market yet is the most well known brand in that market In simple terms, we intend to increase our return from our primary asset – the brand – to create a much larger business We aim to become the biggest brand in not just stamps but in the collectibles market as a whole We believe we have the right strategy and quality management team to achieve our goals
5 What we sell The unique 96c olive-bistre block, recognised as the “crown jewel” of Hong Kong: £750,000 Rare stampsGeneral stamps Fine used penny black: £300 Publishing, albums & accessories Historical documents Celebrity autographs & memorabilia First day covers Edward IV – 1467 Peace Treaty with France. Earliest Royal signature: £175,000
6 How we sell Biggest stamp shop in the world at 399 Strand – approx. 3 million stamps and 60,000 signatures available for viewing Most visited stamp website in the world at www.stanleygibbons.comwww.stanleygibbons.com Dealing – personal client relationships (over 10,000 high net worth clients) Auction – public, online and postal Mail order and telesales E-mail marketing (database of over 150,000 unique e-mail addresses) PR & Advertising
7 How we sell
8 The Market Stamps are the most collected items in the world Universal Postal Union Survey (UPU) states stamp market worth $10 billion per annum Estimated 60 million stamp collectors in the world (20 million of those in China alone) Very fragmented market – SG command a mere 0.4% market share Ageing population – baby boomer generation Emerging markets – Russia, India, and China Autograph and memorabilia market estimated worth of $5 billion per annum
9 The Market
10 Key opportunities Online - to bring together the $10 billion per annum stamp market to one place online at www.stanleygibbons.com through creation of online trading platform, similar to the Amazon and eBay models together with social networking facilities www.stanleygibbons.com New geographical markets – building a presence and trading channels in the two biggest collectible markets in the world (China & US) Investment services - to become the worldwide recognised provider of investment services into collectibles as an asset class, including the creation of satellite investment offices around the world and the launch of structured investment funds in collectibles Diversification into other collectibles – those possessing similar qualities to rare stamps such as coins, medals and first edition books hinged of the respect our brand name carries Development of auctions - with the aim of becoming the “Number 1” UK stamp auction house within the next three years Acquisitions - in both rare stamps and other collectibles where we believe they would strengthen and compliment our overall brand offering, consolidating the fragmented marketplace
11 Investing in collectibles Rare stamps have delivered average annual compound returns of over 10% per annum over past 50 years Collectibles market not correlated with traditional asset classes – GB30 Rarities Index showed growth of 39% in 2008 Collectibles have performed best historically in times of high inflation – between 1975 to 1980, rare stamps increased by over 600% Means of diversification into a tangible asset with a value embedded in history Internationally traded commodity providing protection against exchange rate risks
12 Management Team Main Board comprises four executive directors and four independent non-executive directors, including an independent non-executive Chairman, providing shareholders with appropriate corporate governance Executive committee members comprise: –Mike Hall, Chief Executive –Donal Duff, Chief Operating Officer –Keith Heddle, Sales & Marketing Director –Mark Henley, Finance Director –Richard Purkis, Corporate Services Director –Tony Grodecki, Business Development Director Management team with the breadth of skills and experience together with the determination to drive and implement the strategy successfully
13 Summary – key strengths The BRAND name – recognised as one of the most respected brands in the world that has stood the test of time Expertise – the philatelic community relies on our expertise, particularly in stamp listings and pricing information No major competitors in market – fragmented marketplace in need of consolidation and a huge market share to play for The value held within our intellectual property and website cannot be replicated The market for rare stamps and signatures remains strong and has recently weathered one of the fiercest financial storms in history
14 Appendix I – Financial history
15 Appendix I – Financial history
16 Appendix II – The Board David Martin Bralsford MSc, FCA, FCT, Non-Executive Chairman Date of Birth: 1 January 1948, date of appointment as Director: 1 November 2007 Martin qualified as a Chartered Accountant in 1970, before obtaining a Masters degree in Economics at the London Business School in 1974. He is Chairman of Channel Islands based wealth management business, Collins Stewart (CI) Ltd. He was formerly Chief Executive of C.I. Traders Ltd, a conglomerate being the largest corporate employer in the Channel Islands, which was AIM quoted prior to its take-over by a private equity consortium in July 2007. Martin has also served as President of the Jersey Chamber of Commerce and as Chairman of the Training and Employment Partnership in Jersey. He is on the Board of three other listed or private companies. He chairs the Nomination Committee. Michael Robert Montague Hall BAcc CA, Chief Executive Date of birth: 9 August 1970, date of appointment as Director: 7 August 2000 In 1995 Michael qualified as a Chartered Accountant in Scotland and joined Coopers and Lybrand (now PricewaterhouseCoopers) in Jersey. As a manager, Michael worked on both audit and corporate finance assignments for a variety of listed companies including Flying Flowers. Michael joined Flying Flowers as financial controller of the Collectibles division in July 1999. He was appointed Finance Director of Stanley Gibbons in August 2000 and Chief Executive of The Stanley Gibbons Group plc from 1 July 2003. He is a member of the Nomination Committee.
17 Appendix II – The Board Donal Peter James Duff, BAAF, FCA, AMCT Date of Birth: 11 November 1967, date of appointment as Director: 7 August 2009 Donal qualified as a Chartered Accountant with Coopers & Lybrand in Ireland in 1991 and subsequently transferred to its Jersey office in 1993 to work on a wide range of audit and corporate finance assignments. In 1996, he joined Le Riche Group Limited, a listed company, as Group Financial Controller and was Director of Finance when it was acquired by C.I. Traders Limited, an AIM listed company, in 2002. Donal was Director of Finance and Company Secretary of this company, the largest private sector employer in the Channel Islands, until its acquisition by a private equity consortium in 2007 and he continued to work with the new owners until 2008. Donal was appointed Chief Operating Officer of The Stanley Gibbons Group plc on 17 March 2009. He is also a Non- Executive Director of Jersey Post Limited. Mark David Henley FCA, Finance Director Date of birth: 15 January 1971, date of appointment as Director: 1 August 2007 Mark Henley qualified as a Chartered Accountant and was admitted to membership of ICAEW in 1995. He worked in the audit profession until 1996, when he moved to the commercial sector. He has experience across a range of specialities including media distribution and direct marketing. Mark joined Stanley Gibbons in February 2007 as Finance Director of the Company’s UK operations and was appointed Finance Director of The Stanley Gibbons Group plc on 1 August 2007.
18 Appendix II – The Board Richard Kenneth Purkis, Corporate Services Director Date of birth: 16 May 1955, date of appointment as Director: 1 January 2003 Richard first joined Stanley Gibbons Limited in 1977. He was appointed a Director of Stanley Gibbons Limited, the main trading subsidiary in October 1996 and became Company Secretary of Stanley Gibbons in May 1999. He was appointed Operations Director of The Stanley Gibbons Group Limited with effect from 1 January 2003 and appointed Corporate Services Director on 17 March 2009. Robert Henry Henkhuzens BA, FCA, Non-Executive Director Date of Birth: 21 February 1952, date of appointment as Director: 3 March 2006 Bob Henkhuzens was a partner with Coopers & Lybrand (‘C&L’) in Jersey for ten years. There he headed the commercial sector department providing audit, tax and accounting services to both local and international businesses. During this time he was also responsible for the firm’s corporate finance and management consulting services. Since leaving C&L in 1998, Bob has worked as an independent consultant and advisor and is a director of various private companies. He is a former president of the Jersey Chamber of Commerce and vice-president of the Jersey Society of Chartered and Certified Accountants and remains a committee member of both. He is Chairman of the Audit Committee and a member of the Remuneration and Nomination Committees. He served as Interim Chairman of the Company from 3 August 2007 to 1 November 2007.
19 Appendix II – The Board General Sir Michael Wilkes KCB, CBE, Non-Executive Director Date of birth: 11 June 1940, date of appointment as Director: 15 January 2008 Sir Michael Wilkes served in the British Army for 35 years, reaching the rank of Full General and has seen active service in Special Forces across the world. On leaving the Army in 1995 he was appointed Lieutenant Governor and Commander in Chief of Jersey, where he served until retiring in 2000. Sir Michael was appointed a Non-Executive Director of Le Riche Group Ltd in 2001 and subsequently Chairman. After overseeing its merger he became Deputy Chairman of C.I. Traders Ltd, the largest employer in the Channel Islands, until its recent take-over. Sir Michael holds other non-executive directorships across a range of activities and his outside interests include acting as a Trustee of the Nuffield Trust for the Services. He is Chairman of the Remuneration Committee and a member of the Audit Committee. John Byfield, Non-Executive Director Date of Birth: 7 November 1951, date of appointment as Director: 28 April 2010 John Byfield qualified as a Solicitor in 1978 and was senior partner of a substantial law practice for some 20 years. During that time he specialised in company and commercial law and advised many boards of both private and public companies. John acted as executive Chairman of Essentially Group, formerly AIM listed, from 2002 until the company was sold in October 2009. Jersey resident, he holds a variety of directorships including one with a Jersey Financial Services Commission regulated trust company.
20 Appendix III – Major shareholders
21 Appendix IV – Contact Details The Stanley Gibbons Group plc, Registered Office Martin Bralsford, Chairman Donal Duff, Chief Operating Officer 6 Vine Street St. Helier, Jersey, JE2 4WB Tel: 01534 766711 Email: firstname.lastname@example.org Stanley Gibbons (Guernsey) Limited Mike Hall, Chief Executive 18 Le Bordage St. Peter Port, Guernsey, GY1 1DE Tel: 01481 708270 Email: email@example.com Stanley Gibbons Limited Richard Purkis, Corporate Services Director 399 Strand London, WC2R 0LX Tel: 020 78368444 Email: firstname.lastname@example.org Stanley Gibbons Limited Mark Henley, Finance Director 7 Parkside, Christchurch Road Ringwood, Hampshire, BH24 3SH Tel: 01425 472363 Email: email@example.com
22 Questions? Contact Details: Mike Hall, Chief Executive Tel: +44 (0)1481 708273 Mobile: +44 (0)7781134404 Email: firstname.lastname@example.org “…stamps’ day as an alternative asset class has come – and long- term returns can be first class.” David Stevenson, Financial Times 28 May 2010